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Kakao Pay Expected to Emerge As Korea's Largest Online Securities Firm
Following Alipay's Business Model
Kakao Pay Expected to Emerge As Korea's Largest Online Securities Firm
  • By Yoon Young-sil
  • November 16, 2018, 12:07
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Kakao Pay, the payment subsidiary of mobile messenger giant Kakao Corp., is expected to emerge as Korea's largest online securities and asset management company.

The domestic securities industry expects Kakao Pay Corp. to launch a Korean version of Alipay’s Yu’e Bao spare cash management platform, a stock analyst said on Nov. 15.

Kakao Pay Corp., mobile messenger giant Kakao’s payment subsidiary, has recently announced that it would acquire local midsized brokerage Baro Investment & Securities Co. to expand its financial services.

Lim Hee-yeon, an analyst at Shinhan Investment Corp., discussed Kakao Pay’s strategies to expand into the securities business during “Shinhan Financial Market Forum” held at Shinhan Way Hall in Yeouido, Seoul, on Nov. 15.

Alipay is the world's largest online, mobile payment and lifestyle platform. It is the second largest shareholder of Kakao Pay. Yu’e Bao is an online spare cash management platform within the Alipay app. It is designed to help users efficiently manage their spare funds.

Lim said, “Linking with Kakao Stock, it is possible for Kakao Pay to provide retail services such as cash management accounts (CMAs), stock loans and credit loans.”

He added, “We expect Kakao Pay to launch a platform like Yu'e Bao that helps users invest their cash balances in short-term products, including money market fund (MMF) and money market wrap (MMW).”

In particular, Lim said, “Kakao Pay is highly likely to aspire to be the nation’s largest online securities and asset management firm by tapping into the 43.58 million KakaoTalk users.”